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Gehl Co. is an Ag trailblazer turned compact equipment pioneer, engineering machine solutions for North America since 1859. Skid steers, mini excavators, telehandlers, track loaders, wheel loaders, asphalt pavers — Gehl today not only makes a myriad of unique, small machinery, but also owns two other compact equipment staples (Mustang and CEAttachments).
In mid-September, Gehl Co. announced big changes for its future — that it had signed a definitive agreement to be acquired for $30 per share by its largest shareholder, Manitou BF S.A., a manufacturer and distributor of material handling equipment headquartered in France. The transaction, with an aggregate enterprise value of approximately $450 million, will be effected through a tender offer for all outstanding shares of Gehl by a Manitou subsidiary, Tenedor Corp., followed by a second step, cash-out merger.
“We are pleased to announce the next step in the evolution of Gehl Co. toward becoming a more significant player in the global compact equipment marketplace,” said chairman and CEO William D. Gehl, according to the company’s press release. “The combination of Gehl Co. and Manitou offers a substantial value to our shareholders today while affording our dealers and employees with future opportunities for continued success.”
Manitou is headquartered in France and engages in the design, manufacture and distribution of material handling equipment serving the construction, agriculture and industrial sectors. With its 23 manufacturing and distribution subsidiaries, the Manitou Group is a global leader in rough terrain equipment (all-wheel-steer loaders and telescopic handlers). Such foreign investment is an increasingly popular trend in today’s U.S. economy, which is hindered by a weak U.S. dollar. Foreign investors are buying aggressively, taking advantage of what many see as bargain prices, while making inroads into the world’s largest market. Gehl has refused comments at press time.
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Gehl Co. (NASDAQ GSM: GEHL) is a manufacturer of compact equipment used worldwide in construction and agricultural markets. The company is headquartered in West Bend, Wis., and markets its products under the Gehl and Mustang brand names. It is expected that the current management team will be retained following the transaction.
The definitive agreement contains customary terms and conditions, including the company’s right to terminate the agreement to accept a superior offer. In the event of a termination to allow the company to accept a superior offer, and subject to the company’s payment of a termination fee of $14 million, Manitou would be obligated to tender its shares into the superior offer. Manitou currently owns approximately 14.40 percent of the company’s outstanding stock. Manitou’s CEO, Marcel-Claude Braud, is a director of the company but did not participate in deliberations of the company’s board of directors concerning the tender offer.
| The Lift Company |
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Manitou originally invented the rough terrain forklift and today is a leading global supplier of telescopic handlers and rough terrain forklift trucks. Based in Texas, Manitou North America manufactures and distributes Manitou vertical masted forklifts, Maniscopic telescopic handlers, Manitransit truck-mounted forklifts and masts to dealers and OEM customers throughout the United States. With an international track record of more than 40 years, Manitou has established itself as a quality manufacturer of handling equipment. From Europe to America, Australia to South Africa, a Manitou is known as the machine that offers power, reach and the ultimate in operator comfort and ease of use.
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